The Corruption Files Thomas Fox

What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws. In this first episode of Season 2, Tom and Mike review the Lockheed corruption scandal which led directly to the passage of the FCPA. 
The discussion covers the significant bribery and corruption charges that led to the creation of the Foreign Corrupt Practices Act (FCPA). The hosts explore the international political fallout from the scandal, its impact on various countries including Japan, Italy, and the Netherlands, and the consequences for Lockheed. The episode highlights how the case influenced the development of anti-bribery laws worldwide and the roles played by figures like Stanley Sporkin in shaping these regulations. The conversation also touches on the ongoing challenges in combating corruption in the aerospace industry and its global implications.
Key Highlights
·      The Lockheed Scandal: An Overview
·      High-Level Corruption and Its Unveiling
·      International Repercussions of the Lockheed Scandal
·      The Birth of the FCPA
·      Modern Implications and Compliance
Resources
Mike DeBernardis on LInkedIn
HughesHubbardReed
Tom Fox
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Texas Tax rate at 80% of 8.25%

What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard, discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws.
In this episode of Season 2, Tom and Mike take a deep dive into the historical case of Tyco, a quintessential example of dot-com era excess.
Tom and Mike discuss Tyco’s journey from a small semiconductor company to a corporate giant under CEO Dennis Kozlowski. Kozlowski’s aggressive growth strategies and extreme personal expenditures, such as a $6,000 shower curtain, became infamous. The discussion covers fraudulent activities, including unauthorized bonuses and misuse of loan programs, ultimately leading to Kozlowski and CFO Mark Swartz’s convictions.
The episode also examines the implications for corporate governance and the sweeping changes in third-party risk management prompted by the scandal.
Key Highlights:

The Rise of Tyco

Dennis Kozlowski’s Leadership and Excesses

Uncovering the Fraud

The Loan Programs and Misconduct

The Trial and Conviction

Compliance Lessons from Tyco

Board Oversight and Final Thoughts


 Resources:
Mike DeBernardis on LInkedIn
HughesHubbardReed

Tom Fox
Instagram
Facebook
YouTube
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Mentioned in Podcast
Taking Down the Lion by Catherine Neal
How Compliance Saved Tyco by Joe Mont
Texas Tax rate at 80% of 8.25%

What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard, discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws.
In this episode of Season 2, Tom and Mike take a deep dive into the sordid history of the Bank of Credit and Commerce International (BCCI) (AKA Bank of Crooks and Criminals International).
BCCI was founded in 1972 to facilitate banking for developing countries. BCCI quickly devolved into a hub for money laundering, terrorism financing, and regulatory evasion. They discuss the bank’s complex web of shell companies and insider loans and how a 1991 investigation led by Senator John Kerry exposed these illicit activities.
The episode also highlights the involvement of notable figures like Clark Clifford and Robert Altman in BCCI’s operations and the subsequent legal battles they faced. Finally, the hosts examine the long-lasting impact of the BCCI scandal on global and U.S. banking regulations, including the establishment of stricter anti-money laundering laws and enhanced international cooperation.
Key Highlights:

The Rise and Fall of BCCI

BCCI’s Regulatory Evasion Tactics

BCCI’s Involvement in Terrorism and Illegal Activities

The Congressional Investigation and Shutdown

BCCI’s U.S. Operations and Legal Troubles

High-Profile Trials and Acquittals

Modern Parallels


 Resources:
Mike DeBernardis on LInkedIn
HughesHubbardReed

Tom Fox
Instagram
Facebook
YouTube
Twitter
LinkedIn
Texas Tax rate at 80% of 8.25%

Thomas Fox and Michael DeBernardis discuss energy cases considered FCPA violations, highlighting Panalpina Settlement Day, the uncovered bribery methods, and its implications on the future of compliance, the written policies, and the solutions to commerce and transactions in higher-risk jurisdictions.

 ▶️ Energy Violations and the Panalpina Settlements with Thomas Fox and Michael DeBernardis

Key points discussed in the episode:

✔️ Tom Fox introduces the cases involving Shell, Transocean, Tidewater, Pride International, and Noble.

✔️ Michael DeBernardis describes the company’s methods as a hub-and-spoke arrangement and lays out the Department of Justice’s investigative process. The case has planted the seeds of the pilot program and corporate enforcement policy. The DOJ has become more deliberate in announcing settlements

✔️ Due diligence requires visibility across all aspects of the business. Thomas Fox shares a snippet of advice from a shipping company executive: “If you have a vendor with a 100% success rate, you have a problem.” Any business model based on bribery and corruption never ends well.

✔️ Panalpina’s methods were an open secret across other energy companies, designing ways to circumvent Nigerian customs. Monitoring during this time was less rigorous.

✔️ Due diligence is an ongoing process of improvement. High-risk jurisdictions for particular transactions are now thrown at the forefront.

✔️ Companies outside of the oil and gas industry have started to reconsider their strategies in high-risk areas. The solution is not to stop doing business completely but to work with companies that do compliance.

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Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at tfox@tfoxlaw.com.
Texas Tax rate at 80% of 8.25%

Tom Fox and Michael DeBernardis shed light on the bribery schemes highlighted in the cases of Eli Lilly, Fresenius, and Teva and present the prosecutorial investigation, the questionable donations and expenses, preventative measures for companies to implement, and practicing due diligence to minimize risk.

▶️ Uncovering the Hidden Schemes in Pharma with Thomas Fox and Michael DeBernardis

Key points discussed in the episode:

✔️ Thomas Fox introduces the cases involving Eli Lilly, Fresenius, and Teva.

✔️ Michael DeBernardis breaks down the DOJ and SEC’s investigative process in uncovering Eli Lilly’s bribery schemes – by looking into other companies from similar industries and asking the pressing questions.

✔️ Thomas Fox describes the bribes made: money going to hospitals and to the doctors and nurses directly, sending individuals to five-star resorts for fake conferences and speeches, and paying for articles that were never published. Any prior SCC reinforcement action is already a red flag.

✔️ The Eli Lilly case has made companies warier of working with government officials as a Polish state-owned health organization was involved. Also, the intent of the fraudulent talks and events was fairly obvious from a prosecutorial perspective.

✔️ Michael DeBernardis and Thomas Fox share advice on how companies should approach charitable donations: Know where your money is going, do background checks on the receiving organization and publicize all donations.

✔️ Eli Lilly’s exceeding discount for a certain distributor was pushed to the spotlight. Overriding internal controls requires documenting for a business reason. Most due diligence problems can be solved by looking closer at business justifications.


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Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at tfox@tfoxlaw.com.
Texas Tax rate at 80% of 8.25%

This is Tom Fox. I'd like to welcome you to an exciting new podcast series that I'm premiering on the Compliance Podcast Network, The Corruption Files, together with my co-host Thomas Fox and Michael DeBernardis, an artist partner at Hughes Hubbard & Reed LLP. We're going to be taking a look at some of the top corruption enforcement actions in the United States and beyond.
 In our first five episodes, we're going to focus on some key industries inside the United States, which had important FCPA actions. We're going to focus on the background of each of the enforcement actions. 
What did it mean from the prosecutorial perspective, from both the Department of Justice and the Securities and Exchange Commission? And then what did it mean at the time of the enforcement action? What does it mean today and what does it continue to mean for the compliance professional in the future? 
I know you'll enjoy this great new series, The Corruption Files.
Texas Tax rate at 80% of 8.25%